Power price hike may be reduced

Officials recommend cutting tariff increases from 9% to 7.64% – but warn of R100-million shortfall in budget

IN a bid to show big business that it has heard the cries of high-energy users and is serious about contributing toward the development of the city, the Nelson Mandela Bay Municipality wants to implement reduced electricity tariffs from July.

It wants to change its draft proposal of an electricity hike of 9% for the 2016-17 financial year to 7.64%, which is in line with the guidelines set by the National Energy Regulator of SA (Nersa) for municipalities.

The city is also proposing not to increase the tariffs for business and commercial entities that are structured on a peak-energy charge system.

This system charges more for electricity during peak hours.

While this could save residents and businesses a lot of money, if approved, it could create a R100-million deficit in the city’s budget.

This is all subject to council approval. The draft budget is expected to be discussed in council on Wednesday.

At an infrastructure, engineering and energy portfolio committee meeting, held in Uitenhage yesterday, acting electricity head Peter Neilson said innovative ways to raise money to make up for the deficit would have to be found.

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